Employment Practice Liability Insurance (EPLI) covers the cost of defense, indemnity, often administrative hearings and actions against the claims of workers who you employ that allege their “rights” may have been violated. Workers’ compensation policy will no longer protect the employer from workers seeking emotional distress or rights damages.
Good human resource policies and well-trained managers help reduce the risk of employment practices-based suits. But, if an employee feels he or she has been unfairly treated, they can still take legal action. Employers may be subjected to a range of claims. Whether they would be covered by insurance depends on the policy provisions and the specific facts of the situation. You certainly need to consider how to best protect you and your business.
Employment Practices Liability Insurance (EPLI) policies with different terms and conditions are available for your specific requirements. EPLI policies will generally exclude punitive damages and civil or criminal awards. An EPLI policy tailored to the company’s needs coupled with a proactive employee practice program is the best approach to reducing employee claims.
The cost of EPLI will vary significantly depending on the number of employees, the risks associated with the industry, and past history of the company.
EPLI is separate from worker’s compensation insurance and excludes EPLI as a liability under the policy. To understand the differences and importance of EPLI call our agency to learn more.